Bill To Create Family Homes

Wanganui Chronicle, 6 October 1950, Page 5

Bill To Create Family Homes

WELLINGTON, Last Night (PA)— Legislation enabling a man and 'his wife to establish a family home with the assurance that it will belong to both of them jointly and pass to the survivor in the event of the death of one of them, was introduced in the House of Representatives tonight. This provision is contained in a Joint Family Homes Bill, which implements one of the main planks of the National Party's election policy. The family home can be established in terms of the Bill up to a value of £4OOO.

To encourage the adoption of the new scheme, provision is made that providing the settler is solvent at the date of settlement, the settled home shall be protected against the claims of creditors to the extent of £2OOO. To the same extent, it will also be exempt from death duties when it passes on the death of one of the beneficiaries to the survivor. There is exemption from gift duty and stamp duty on the creation of the settlement to the extent, of £4OOO. In the event of divorce or separation, the court may determine who is to have possession of the home. It may, alternatively, direct its sale or lease, or cancel the registration of a joint family home certificate. Disputes regarding a joint family home are to be determined by the courts. The Attorney-General, Mr Webb, said he was proud to introduce the Bill, which it was hoped would do something to increase the sanctity of family life. He had no wish to exaggerate, but everyone must deplore the amount of domestic unhappiness evident today. Something might be done to arrest this trend by enabling spouses to settle their home on their two selves.

Mr. Nash (Opp.. Hutt) said there were already thousands of cottages held jointly by (he husband and wife, which automatically went to the wife on the husband's death without any stamp duty, up to a value of £5OOO. This provision had been included in the operation of the State Advances Corporation for many years. The only additional provision in the Bill seemed to be one that would benefit the widower if the wife died first. Mr Webb acknowledged that joint home ownership had existed for many years, but under the present joint ownership there was nothing to prevent either party selling the property . Under the Bill now introduced the family home could be sold only jointly by the husband and the wife. The Bill was read a first, time.